Report to Mayor and City Council
Tuesday, September 17, 2024
Consent
SUBJECT:
Title
FISCAL YEAR 2023-2024 YEAR-END CONTINUING APPROPRIATIONS (CITY COUNCIL)
Body
I. SUMMARY
At the close of each fiscal year, the staff compiles a list of budgeted appropriations recommended for carryover into the next fiscal year. This list, known as the Proposed Continuing Appropriations (Exhibit No. 1: Capital Improvement Projects; Exhibit No. 2: General Fund and Non-Departmental, Exhibit No. 3: Special Revenues), highlights Capital Projects that are either incomplete or have experienced delays, grants, as well as invoices for services provided during the last fiscal year but received after the year-end close. In some instances, the unspent budget from the previous year must be carried forward to ensure funding for the project's completion.
The primary purpose of this report is to request continuing appropriations for a variety of projects from every department. There is no fiscal impact associated with the request.
II. RECOMMENDATION
Recommendation
Waive further reading and adopt:
1. RESOLUTION NO. 24-085, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2023-2024 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS TO FISCAL YEAR 2024-2025; and
2. RESOLUTION NO. 24-086, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2024-2025 BUDGET TO CONTINUE UNSPENT APPROPRIATIONS FROM FISCAL YEAR 2023-2024.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The staff has established a carryover review process where departments are required to submit justification and funding sources for any unencumbered, available funds they wish to carry over. The final list of continued appropriations, outlined in Exhibit No. 1 (Capital Improvement Projects), Exhibit No. 2 (General Fund), and Exhibit No. 3 (Special Revenues), is adopted by the City Council in September and becomes part of the City’s Fiscal Year 2024-2025 annual budget.
Each year, during the budget development process, staff reviews and evaluates project priorities, available funding, and makes necessary adjustments to stay within the resources available. The Capital Improvement Program (CIP) is a dynamic plan that is updated annually to reflect the changing needs, priorities, and funding opportunities of the community, ensuring that the infrastructure supports the City Council’s mission, vision, and priorities. For Fiscal Year 2023-2024, the City of Carson approved an amended budget of $66.5 million for the CIP, of which $23.5 million (35% of the budget) was expensed, leaving a balance of $43 million at the close of the fiscal year.
Exhibit 1 in the report lists requests to carry over unused budget for Capital Projects that are either incomplete or delayed, as well as invoices received after the fiscal year-end for services rendered in the previous fiscal year.
• Public Works Department: $10.2 million from various special revenue funding sources for ongoing CIP projects.
Exhibit 2 outlines various departmental requests for continued appropriations from the General Fund, summarized as follows:
• Community Development Department: $936,255 in unspent FY 2023-2024 funds for the Community Development Façade Program, allowing the City to reimburse businesses up to 50% of improvement costs.
• Community Services Department: $115,561 requested in FY 2023-2024 for continued appropriation.
• Human Resources Department: $222,424 requested, including $214,500 for completing the Class and Comp Study, and various outstanding invoices.
• Public Safety Department: $14,908 requested, covering various expenses including invoices, and ongoing projects.
• Public Works: $360k, for On-Call contracts, related to projects, $44,932 for vehicles (with delivery expected in Q1 2024), $11,540 related to Grant Service.
Exhibit 3 provides various departmental requests for continued appropriations from Special Revenue Funds, summarized as follows:
• City Manager-Housing Division: $1.9M in unspent funding for various Grants related to Housing.
• Community Development Department: $9,010 for African American Cultural Heritage Action Fund Grant
• Public Works Department: $378k in unspent Funds for CIP related projects
Overall, the staff is requesting a total of $14,204,162 to be carried forward. $10,207,064 for the CIP Continued Appropriations (Exhibit No. 1), and $1,705,280 in the General Fund and Non-Departmental (Exhibit No. 2), and $2,291,818 for Special Revenues.
V. FISCAL IMPACT
There is no fiscal impact associated with the carryover requests. If approved, the budget will be reduced in Fiscal Year 2023-2024 and the budget will be increased in Fiscal Year 2024-2025; resulting in no change or impact to the General Fund estimated spending and fund balance.
VI. EXHIBITS
1. CIP Continued Appropriation (pgs. 4-5)
2. General Fund Continued Appropriation (pgs. 6-8)
3. Special Revenue Continued Appropriation (pg. 9)
4. Resolution No. 24-085 to decrease FY 23-24 (pgs. 10-13)
5. Resolution No. 24-086 to increase FY 24-25 (pgs. 14-17)
Prepared by: William Jefferson, Director of Finance